Fed’s Beige Book says US economic activity declines in increasing number of districts
(MENAFN) The latest Federal Reserve report, known as the Beige Book, indicates a decline in economic activity across an increasing number of Fed districts. According to the report released on Wednesday, economic growth was reported in only three districts, while the number of districts experiencing flat or declining economic activity rose significantly from five in the previous reporting period to nine in the current one. This trend suggests a broadening slowdown in economic conditions across the United States.
The Beige Book, which compiles data on economic conditions from the Fed’s 12 districts, noted that while overall employment levels remained steady, there were notable exceptions. Some firms reported making only essential hires, cutting back on hours and shifts, or reducing overall employment levels through natural attrition. These measures reflect a cautious approach to staffing amid the current economic uncertainties.
Wage growth remained modest during the reporting period, according to the Beige Book. However, non-labor input costs and selling prices showed varying degrees of increase, ranging from slight to moderate. This indicates that while wage pressures may not be pronounced, other cost factors are contributing to inflationary pressures in different sectors of the economy.
Consumer spending also experienced a decline in most districts, a shift from the generally steady spending patterns observed in the previous reporting period. This decrease in consumer expenditure could further impact economic activity, signaling potential challenges ahead for the broader economy as consumer confidence and spending levels adjust.
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